Position Size Calculator
Your Trade
Your Position Size
Your Size At Different Stop Distances
| Stop Distance | Lots | Units | Value Per Pip | Risk |
|---|
How Position Sizing Works
Risk Decides Size
You choose how much you are willing to lose, then the stop distance decides the size. A wider stop means a smaller position for the same money at risk, and a tighter stop allows a larger one. The cash you stand to lose stays the same either way, which is the entire point.
Why Sizes Get Rounded
Brokers accept lots in steps of 0.01, so an exact figure like 1.4736 cannot be placed. The calculator rounds down rather than up, because rounding up would put you over the risk you set. The rounded size is always the safer one.
Keeping Risk Consistent
Sizing every trade off a fixed percentage keeps one bad trade from doing real damage, and it automatically shrinks your positions after a loss and grows them as the account recovers. Most funded accounts are lost by traders who sized off conviction instead.
Position Sizing Questions Answered
How do I calculate position size in forex?
Divide the cash you are willing to risk by your stop distance in pips, then divide that by the value of one pip per lot. On a pair quoted in dollars one pip per standard lot is 10 dollars, so risking 1,000 dollars with a 20 pip stop gives 1,000 divided by 20, which is 50 dollars per pip, and that is 5 lots.
What percentage should I risk per trade?
Most experienced traders risk between half a percent and 2 percent of the account on a single trade. On a funded account the important test is whether a realistic losing streak still leaves you inside your drawdown limit. Risking 1 percent gives you room for roughly ten losses in a row against a 10 percent limit, which is usually enough to survive a bad run.
Why is my calculated lot size rounded down?
Because brokers only accept lot sizes in steps of 0.01, and rounding up would mean risking more than you decided to. Rounding down keeps you inside your limit, so the actual risk shown is always equal to or slightly below your target.
What happens if my stop is too wide for my account?
The calculation can return a size below the smallest tradeable lot of 0.01, which means the trade cannot be placed at your intended risk. Your options are to tighten the stop, accept a higher risk on this trade, or skip it. Placing the minimum size anyway would risk more than you planned.
Does the stop loss include the spread?
No. This calculator works from the stop distance you enter, so it does not account for spread, commission or slippage. Your real loss will be slightly larger than the figure shown, which is another reason to round down rather than up.
Why do yen and cross pairs need an exchange rate?
Because the pip is earned in the second currency of the pair rather than in dollars, so it has to be converted before the size can be worked out in a dollar account. Without the current rate the position size for those pairs would be wrong.
Is this position size calculator free?
Yes. It is free with no sign up, it runs entirely in your browser, and results update as you type. Nothing you enter is sent anywhere.
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